Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right hand.

He has made more than 10 employ the last 30 minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman gets all set to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later his prediction comes true, as India wins the match in a nail-biting finish.

"I have actually made $200 today," he states with a childish glee.

For more than 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful betting distributes thrive in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions include so-called "black cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law prohibiting web gaming, there is nothing comparable here.

And overseas sports betting business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore firms.

"Legally you can get away [with this], as the law is unclear for online gaming," states Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline gambling", done through telephone call which dominate the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some players and team officials were found guilty of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the ideal direction.

"I do not mind paying some cash out my revenues, as long as I can gamble openly," states our cricket gambler.

It would likewise open a big service chance for licensed bookies and global online sports betting companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work along with sports betting business, you will have an extremely effective method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) people would not want to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to place huge bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a tough concept to offer.

"Despite the fact that many individuals are involved in some sort of gaming - it's still a controversial problem for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their area.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having been backed by an official panel for the first time, a minimum of a debate has actually ignited around a subject - which till now was considered a taboo.